Scavenger hunts can be a fun part of a child’s birthday party. But when it comes to putting together, reviewing or approving loan packages, a scramble for the right information is the last thing a financial institution wants or can afford. In fact, it’s critical for team members in the loan review or risk management process to be able to access quickly and efficiently all pertinent information. This is especially important as banking regulators evaluate an institution’s efforts to identify loans for impairment and to estimate reserves against potential losses.
Yet inefficient data management has become a big issue for many financial institutions. Bank profitability levels can hardly afford the costs in dollars and staff time that inefficient data management produces, especially considering that low interest rates and tepid loan growth are expected to continue to pressure financial institutions’ net interest margins.
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